Vocabulaire stock market Flashcards

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1
Q

Appreciate

A

consist of evaluating or mesuring the value of a certain object or service

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2
Q

Arbitrage

A

financial strategy that consist of taking advantage of the price difference between different markets for the same financial assets in order to obtain an economic benefit

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3
Q

Asset-backed security

A

Bonds or promissory notes that are backed by financial assets. They are usually made up of accounts receivables

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4
Q

Asset

A

Any resource owned by an individual or entity that has economic value and can be converted into cash or used to generate income.

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5
Q

Bank secrecy act

A

law to combat money laundering and other financial crimes

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6
Q

Banker

A

Person whose job consist on helping their clients to take the best decisions for their company

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7
Q

Bear market

A

Market that has a history of sustained declines over time and towards which investor don’t feel very optimistic regarding an increase

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7
Q

Bear

A

An investor who believes that the market or a specific asset will decline in value, leading to a selling strategy.

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8
Q

Bond

A

Title that represents the right to receive a flow of periodic payments in the future exchange for delivering an amount of money

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9
Q

Broker

A

the person responsible for executing the marketing and sale’s activities of products or services

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10
Q

Building societies

A

financial institution that offers banking and other financial services

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11
Q

Bull

A

An investor who believes that the market or a specific asset will rise in value, leading to a buying strategy.

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12
Q

Bull market

A

A specific type of buoyant market characterized by a sustained period of rising prices. It reflects strong investor confidence and positive economic outlooks.

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13
Q

Buoyant market

A

A financial market where prices are rising or stable, driven by investor confidence and optimism, leading to increased trading activity. It can refer to both rising and stable conditions.

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14
Q

Call (option)

A

at the end of the lease period, the lessee usually has the option to purchase the asset at a nominal price

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15
Q

Capital market

A

is a financial market in which long-term debts are bought and sold

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16
Q

Capitalization rate

A

mesure of profitability used to evaluate the possible rate of return on a income-producing investment property

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17
Q

Clearing

A

payments or benefits that an employee receives in exchange for their work or services

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18
Q

Closing price

A

the last price at which a stock traded during a regular trading session

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19
Q

Collateralized debt obligation

A

is a type of financial product structured and backed by ABS financial assets

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20
Q

Commercial bank

A

institutions that have been authorized by the Federal Government to raise financial resources and grant credits

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21
Q

Compound interest

A

Interest calculated on both the initial principal and the accumulated interest from previous periods.

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22
Q

Cost of debt ratio

A

is a math. quotient that represent the total percentage of debt that a business has in relation to its own resources

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23
Q

Cost of debt

A

monetary cost that a company makes through loans

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24
Q

Cost of equity

A

cost that a company has to obtain financing through its own resources

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25
Q

Credit

A

An agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.

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26
Q

Credit default swap (CDS)

A

is a financial derivative that allows to cover the risk of non-payment of a financial asset

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27
Q

Credit rating agency (CRA)

A

private entities whose main function is to provide an assesment of the credit risk of a company or financial product through a series of rating

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28
Q

Current assets

A

are instruments that allow to obtan profitability in a period of less than 12 months

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29
Q

Current yield

A

is the annual income generated by an investment, expressed as a percentage of its current market value

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30
Q

Deflation

A

Is a general and continued fall in prices in economy

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31
Q

Depreciate

A

To reduce in value over time, typically referring to assets due to wear, aging, or market conditions.

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32
Q

Discount rate

A

interest rate that is used to calculate the value of a series of income that will be received later

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33
Q

Diversification

A

consist on dividing the available resources to asign each part to differents assets

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34
Q

Dividends

A

they are the part of profits that a company has generated, They are distributed among its partners or shareholders

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35
Q

Dividend per share (DPS)

A

is an essential financial indicator that mesures the amount of money a company pays its shareholders for each share in circulation.

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36
Q

Dull market

A

is characterized by a prolonged period of low volume and small price changes

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37
Q

Earnings per share (EPS)

A

is a financial index that is used to mesure the profitability of a company

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38
Q

Enterprise value

A

A measure of a company’s total value, calculated as market capitalization plus debt, minus cash and cash equivalents.

39
Q

Equity (=stock)

A

A share in the ownership of a company, representing a claim on part of its assets and earnings.

40
Q

Exchange rate

A

indicates how many units of one currency are needed to acquire one unit of another currency

41
Q

Financial analyst

A

they study the company’s financial statements and the economic context to guide it in making financial or investments decisions

42
Q

Financial circle

A

the period of time it takes a company to carry out all of its operations.

43
Q

Foreign currency / exchange

A

currency that are different from the ones of the country of origin

44
Q

Financial markets

A

a place, physical ir virtual, where financial assets are bought and sold

45
Q

Gamble on the Stock Exchange

A

the process by which capital is allocated to the purchase of shares of listed companies or other financial instruments with the objective of obtaining a return on them

45
Q

Foreign-exchange broker

A

intermediary between the client and the market

46
Q

Forward (contract)

A

made for a specific task and ends when the work is completed

47
Q

Future contract

A

is a legal agreement between two parties to trade an asset at a predefine price, on a specific date in the future

48
Q

Guaranteed Investment Certificates (GIC)

A

Is a type of low-risk investment with a guaranteed interest rate

49
Q

Hedge

A

Strategy of reducing the risk associated with an investment by taking steps to protect against potential losses

50
Q

Hedge fund

A

Investment vehicles managed by financial expertes who seek to obtain profits for their investors while managing and protecting their assets

51
Q

Inflation

A

general increase in the price of goods and services in an economy over a period of time

51
Q

International Monetary Fund (IMF)

A

Is an organization made up of 184 countries, which works to promote global monetary cooperation

51
Q

Internal rate of return (IRR)

A

Is a capital budgeting measure that companies use to determine the profitability of a potential investment or a project based on cash flow predictions

52
Q

Investment fund

A

Funds that invest in the money market, in which cash and other assets are traded

53
Q

Limit order

A

An order to buy or sell a security at a specific price or better

53
Q

Liquidity ratio

A

A metric used to determine a company’s ability to cover its short-term obligations

53
Q

Legal tender

A

official form of payment that may be accepted for a public or private debt or fulfill a financial obligation in accordance with the laws of the area

54
Q

Load

A

A fee charged when buying or selling mutual funds

55
Q

Loan

A

A sum of money borrowed with the expectation of repayment, typically with interests

56
Q

Market capitalisation

A

The total market value of a company’s outstading shares

57
Q

Market risk premium

A

The additional return expected from an investment in a risky asset over a risk-free rate

58
Q

Money laundering

A

The process of concealing the origins of illegally obtained money

59
Q

Mutual fund company

A

A firm that pools funds from investors to invest in a diversified portfolio of securities

60
Q

Net present value (NPV)

A

The difference between the present value of cash inflows and outflows over a period of time

61
Q

No load mutual fund

A

A mutual fund that does not charge a sales fee or comission

62
Q

Opening price

A

The first price at which a security is traded when the market opens

63
Q

Over-the-counter (OTC) off exchange trading

A

Trading of securities directly between parties, outside formal exchanges

64
Q

P/E ratio (Price to earnigs)

A

A ratio used to value a company, calculated by dividing the stock price by the earnings per share

65
Q

Parity

A

The condition where two assets or currencues have equal value

66
Q

Payout ratio (DPS/EPS)

A

The percentage of earnings paid out as dividends to shareholders

67
Q

Put (option)

A

A financial contract that gives the holder the right, but not the obligation, to sell an asset at a specified price within a certain period

68
Q

Quotation

A

The most recent price at which a security or commodity was traded or is being offered for sale

69
Q

Reach maturity

A

The point when a financial instrument or loan reaches its due date for repayment

70
Q

Recover

A

To regain value or profitability after a decline

71
Q

Restricted funds

A

Funds that can only be used for specific purposes, as defined by a donor or regulator

72
Q

Return on investment (ROI)

A

A mesure of profitability calculated as the return on an investment relative to its cost

73
Q

Risk -free rate

A

The return on an investment with no risk of financial loss, often represented by government bonds

74
Q

Sag

A

A decline or weakening in economic conditions or prices

75
Q

Saving bank

A

A financial institution that receives savings deposits and pays interest

76
Q

Securities

A

Tradable financial assets, such as stock, bonds or derivatives

77
Q

Securitise / Securitize

A

The process of pooling various financial assets and repackaging them into security for investors

78
Q

Setback

A

A temporary decline or delay in progress, often referring to financial or economic performance.

79
Q

Share, stock (US)

A

A unit of ownership in a company, representing a claim on part of its assets and earnings.

80
Q

Short sales

A

The sale of a security not owned by the seller, with the intent of buying it back at a lower price to profit from a price decline.

81
Q

Sound investment

A

An investment considered safe and reliable, with steady returns and minimal risk.

82
Q

Speculator

A

An investor who takes high risks in the hopes of achieving significant financial gains, often through short-term market movements.

83
Q

Stockbroker

A

A professional who buys and sells securities on behalf of clients, typically earning a commission for each transaction.

84
Q

Swap

A

A financial contract where two parties exchange cash flows or liabilities, often to manage risk or achieve better terms.

85
Q

Tracker

A

A financial instrument or fund that follows the performance of a specific index or asset.

86
Q

Treasury bill

A

A short-term government debt security issued at a discount and maturing within one year.

87
Q

Volatility

A

The degree of variation in the price of a financial asset, indicating how much and how quickly prices can change.

88
Q

Yield

A

The earnings generated from an investment, typically expressed as a percentage of its cost or current market value.

89
Q

Warrant

A

A financial instrument giving the holder the right, but not the obligation, to buy a company’s stock at a specific price before a set expiration date.